Vodafone will offer Vivendi GBP3 billion for its 44% stake in Cegetel. There had been deliberation over the bid, since investor confidence in making such a bold move was low.
Shareholders were weary since the company had announced record losses of GBP13.5 billion. However, this acquisition is likely to boost company revenues in the long term since Cegetel owns SFR, France’s second largest mobile network. Cegetel is a profit making company, and the deal would give Vodafone control of SFR.
The deal should work well for both Vodafone and Vivendi, whose chairman has promised to improve the volume of transactions within the next two weeks. The only spanner in the works might be if Cegetel’s other shareholders BT and SBC kick up a fuss about the sale. Between them they have a 41% holding.
However, Vivendi and Vodafone both appear eager to push the sale through. A decision is likely sooner rather than later.